Tag: GST India

Business

GST Rate Cut 2025: New Two-Tier Structure Announced; Goa Casinos Face 40% Levy Concern

allycaralgoa

The Goods and Services Tax (GST) landscape in India is set for a significant shift. On Wednesday, Finance Minister Nirmala Sitharaman announced that the GST Council has approved a new two-tier GST structure, effective September 22, 2025.

Key Highlights of the GST 2025 Update

  • The new GST regime introduces 5% and 18% slabs, replacing the earlier complex multi-slab system.
  • Life and health insurance policy premiums will now be fully exempt from GST, bringing relief to policyholders.
  • Sin goods, including tobacco and related products such as cigarettes, will be taxed at a steep 40% levy.
  • The same 40% GST has been extended to casinos, placing Goa’s gaming industry in the spotlight.

Impact on Goa’s Casino Industry

Casino operators in Goa expressed deep concern over the 40% GST on gaming. Industry insiders warn that:

  • The heavy levy may cause a decline in footfall at casinos.
  • Potential investors could shy away due to reduced profitability.
  • The move could put thousands of jobs at risk, threatening a key contributor to Goa’s tourism economy.

Until now, casinos were taxed under the 28% GST slab on the face value of bets. The new 40% rate represents a sharp hike that many believe could stall industry growth.

Balancing Reform and Revenue

While the government’s move to simplify GST rates and provide relief for insurance premiums has been welcomed, the harsh tax treatment of sin goods and casinos underscores the Centre’s strategy of balancing consumer benefit with revenue maximisation.

What Lies Ahead?

As the new GST structure comes into force later this month, stakeholders across industries will be closely monitoring its real-world impact. For Goa’s casino industry, the focus remains on whether policymakers might revisit the 40% levy in light of its potential impact on jobs and tourism.

Finance

GCCI Applauds Historic GST Reforms Aimed at Economic Growth and Social Inclusion

Tanisha Cardozo

The Goa Chamber of Commerce & Industry (GCCI), under the leadership of its President Ms. Pratima Dhond, has expressed strong support for the sweeping Goods and Services Tax (GST) reforms announced at the 56th GST Council Meeting. These reforms, hailed as one of the most progressive steps in India’s tax history, aim to simplify the indirect tax structure while promoting inclusive economic growth.

The introduction of a simplified two-slab GST structure — with rates of 5% and 18% — accompanied by a special 40% slab for luxury and sin goods, is expected to bring stability and clarity to the tax regime. GCCI believes this will lead to improved compliance, reduced litigation, and heightened investor and consumer confidence.

Among the most lauded aspects of the reform is the complete removal of GST on all individual life and health insurance policies — a move expected to increase affordability, boost insurance penetration, and strengthen the country’s financial safety net. GCCI considers this a landmark development towards financial inclusion and social security.

In the healthcare sector, the exemption of GST on 33 lifesaving drugs, and reduced rates on others including medical equipment, is expected to reduce the cost burden on citizens and enhance accessibility.

MSMEs, which form the backbone of India’s economy, stand to benefit significantly from reduced compliance burdens and lower tax costs. This boost to competitiveness could further energize employment and innovation in the sector.

The reforms also provide considerable relief to farmers and workers in labor-intensive industries. Reduced GST on tractors, farming equipment, textiles, leather goods, marble, and handicrafts is aimed at reviving rural and artisanal economies.

For households and the common man, daily-use products like soaps, hair oil, milk products, tea, coffee, namkeens, and bicycles now fall under the 5% or NIL tax bracket, improving affordability and encouraging consumption. This is expected to increase demand for discretionary and aspirational products including consumer durables, automobiles, and home appliances — potentially adding 20 to 50 basis points to GDP growth.

The operationalisation of the long-awaited GST Appellate Tribunal is expected to reduce legal disputes and foster ease of doing business. GCCI noted that the reforms address both industry concerns and public needs, maintaining a thoughtful balance. While the government may incur a revenue loss estimated between ₹0.7 to ₹1.8 trillion annually, this is offset by the continued application of the 40% GST rate on luxury and sin goods such as pan masala, aerated drinks, and tobacco.

GCCI President Ms. Dhond summed up the mood, stating, “This across-the-board reform is not only pro-business and pro-consumer, but also pro-society. By making insurance and healthcare affordable, while boosting consumption and competitiveness, the GST reforms will go a long way in strengthening India’s economic growth and socio-economic fabric of our nation.”

These reforms mark a turning point in India’s economic journey — blending fiscal prudence with inclusive growth.

Business

India’s GST Collection Reaches ₹1.96 Trillion in July 2025By Allycaral News Desk | Updated August 2025

allycaralgoa

India has reported a substantial Goods and Services Tax (GST) collection of ₹1.96 trillion (₹1,96,000 crore), or approximately $22.4 billion, for the month of July 2025. This impressive figure marks one of the highest collections since the introduction of the GST system in 2017.

The robust revenue performance reflects sustained economic activity, increased domestic consumption, and a wider tax base with improved compliance. It also highlights the effectiveness of ongoing measures by the Goods and Services Tax Council and the Ministry of Finance to curb tax evasion and simplify tax processes.

Analysts attribute the rise to enhanced reporting systems, digitization of returns, increased audits, and sectoral reforms that are helping plug revenue leakages.

According to the Ministry of Finance, revenues from domestic transactions—including services and goods—showed notable growth year-on-year, while settlement of IGST among states also contributed to the total inflow.

The GST regime, often regarded as the biggest tax reform in India, was launched to unify the country’s complex indirect tax structure and improve transparency. Over the years, it has emerged as a reliable barometer for India’s formal economic activity.

As the country progresses toward its 2025–26 fiscal goals, consistent GST performance will remain crucial for infrastructure spending, welfare programs, and debt management.